Binance Operates Without License in the Philippines, SEC Warns
Crypto exchange Binance has been operating in the Philippines without securing the necessary license or approval, according to a warning issued by the country’s securities regulator, the Philippines Securities and Exchange Commission (SEC). The SEC stated that Binance lacks authorization to sell or offer securities within the country and accused the exchange of illicitly promoting its services. Entities involved in promoting or trading on Binance may face criminal liability under Section 28 of the SRC, which carries penalties of up to 5 million Philippine pesos or imprisonment of up to 21 years. Despite warnings, Binance continues to be a popular cryptocurrency trading platform in the Philippines.
SEC Plans to Restrict Access and Ban Online Advertisements
The SEC plans to restrict access to Binance’s website and applications in the Philippines over the next three months, allowing local users to liquidate and withdraw their positions. Additionally, the SEC has requested Google and Meta to ban Binance’s online advertisements in the country. Kenneth Stern, former general manager of Binance in the Philippines, left the exchange this month. In response to the SEC’s warning, Binance stated its commitment to aligning with local regulations and addressing concerns raised by the regulator. This development comes after Binance’s recent settlement with U.S. authorities, where it agreed to pay $4.3 billion in fines for various violations.
Hot Take: Regulatory Scrutiny Continues for Binance
The warning from the Philippines SEC adds to the growing list of regulatory challenges faced by Binance. Operating without proper licenses or authorization is a serious offense that can result in hefty penalties and legal consequences. The SEC’s plans to restrict access to Binance’s platform and ban online advertisements demonstrate a firm stance on enforcing compliance within its jurisdiction. Binance’s recent settlement with U.S. authorities has already raised concerns about the exchange’s adherence to regulatory standards. As Binance faces scrutiny in multiple jurisdictions, it is crucial for the exchange to actively engage with regulators, address concerns, and take proactive steps to ensure compliance to maintain its reputation and user base.
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